Amazon.com, Inc. (AMZN), headquartered in Seattle, Washington, is the world's largest online retailer and marketplace. The company engages in the retail sale of consumer products, advertising, and subscription services through online and physical stores. With a market cap of $2.6 trillion, its products include books, music, computers, electronics, and numerous other products. Amazon offers personalized shopping services, web-based credit card payment, and direct shipping to customers. It also operates a cl ...

Core Insights - Amazon.com, Inc. is the world's largest online retailer with a market cap of $2.4 trillion, offering a wide range of products and services including retail sales, advertising, and cloud services [1][2] Company Overview - Amazon operates both online and physical stores, providing personalized shopping services and direct shipping to customers [1] - The company is categorized as a "mega-cap stock" due to its market cap exceeding $200 billion, reflecting its significant influence in the internet retail industry [2] Market Performance - Amazon's stock has decreased by 12.5% from its 52-week high of $258.60, which was reached on November 3 [3] - Over the past three months, AMZN stock declined by 1.1%, underperforming the Nasdaq Composite's 6.2% gains [3] - Year-to-date, Amazon shares have risen by 3.1% and increased by 14.8% over the past 52 weeks, but still lag behind the Nasdaq's YTD gains of 18.4% and a 20% increase over the last year [4] Technical Analysis - Amazon has been trading above its 200-day moving average since mid-May, although it has recently traded below its 50-day moving average [4] Investment Concerns - Analysts express concerns regarding the returns on AI investments and the growth of Amazon Web Services (AWS), citing "dilutive returns" from AI spending and limited upside potential [5] - Heavy capital expenditures on AI and infrastructure have put pressure on the stock [5] Recent Financial Results - In Q3, Amazon reported earnings per share (EPS) of $1.95, exceeding Wall Street's expectations of $1.58, with revenue of $180.2 billion, surpassing the forecast of $177.9 billion [6] - For Q4, Amazon anticipates revenue between $206 billion and $213 billion [6]

Federal Reserve Decision - The Federal Reserve cut the benchmark lending rate by 25 basis points to a range of 4-4.25%, marking the first interest rate cut of the year [1][9] - The decision was supported by 11 out of 12 voting members, with expectations of two more rate cuts of 25 basis points each this year and additional cuts in 2026 and 2027 [2] AI Infrastructure Sector - A low-interest-rate environment is expected to benefit high-growth sectors, particularly technology, consumer discretionary, and cryptocurrency [3][9] - The AI infrastructure segment is experiencing significant momentum, driven by strong demand and projected spending that will transform various industries over the next five years, including automation, robotics, healthcare, and cybersecurity [5] Recommended AI Infrastructure Stocks - Five mid-cap AI infrastructure stocks are recommended for investment: UiPath Inc. (PATH), Qualys Inc. (QLYS), Calix Inc. (CALX), TaskUs Inc. (TASK), and InterDigital Inc. (IDCC) [4][9] - Each of these companies has a Zacks Rank of 1 (Strong Buy) or 2 (Buy), indicating strong investment potential [4] Company Highlights UiPath Inc. (PATH) - UiPath offers an end-to-end automation platform with advanced AI capabilities, including generative AI features [10] - Expected revenue and earnings growth rates for the current year are 10.1% and 20.8%, respectively, with a 14.3% improvement in earnings estimates over the last 30 days [11] Qualys Inc. (QLYS) - Qualys is benefiting from the demand for cloud-based cybersecurity solutions, with a balanced customer mix that enhances resilience [12] - The company has expected revenue and earnings growth rates of 8.1% and 4.6%, respectively, with a 0.5% improvement in earnings estimates over the last week [14] Calix Inc. (CALX) - Calix provides cloud and software platforms for communication service providers and has integrated AI into its offerings [15][16] - Expected revenue and earnings growth rates for 2025 are 15.3% and over 100%, respectively, with a 25.6% improvement in earnings estimates over the last 60 days [16] TaskUs Inc. (TASK) - TaskUs specializes in outsourced digital services across various sectors and has formed strategic partnerships to enhance its AI capabilities [17][18] - Expected revenue and earnings growth rates for 2025 are 17.8% and 16.3%, respectively, with a 4.2% improvement in earnings estimates over the last 30 days [20] InterDigital Inc. (IDCC) - InterDigital focuses on technology solutions for mobile and IoT markets, with innovations in AI-powered receiver design for future wireless communications [21][22] - Expected revenue and earnings growth rates for the current year are -6.7% and -6.2%, respectively, with a 5.9% improvement in earnings estimates over the last 30 days [24]